„The Year of Whistleblowing“: EQS Group continues growth track in the financial year 2023

• Revenue* growth of 15 percent compared to the previous year
• Regulatory conditions strengthen customer and revenue growth, particularly in the compliance segment
• Successfully completed takeover offer by financial investor Thoma Bravo supports growth and development potential

Munich – 29 April 2024

EQS Group has published the 2023 annual report. The company continued its growth trajectory in FY 2023 and generated revenue* of EUR 69.40 million (previous year: EUR 60.29 million). The compliance segment showed strong revenue growth of 18 percent. Revenue in the Investor Relations segment increased by 3 percent. The company’s EBITDA* fell to EUR 3.28 million (previous year: EUR 4.92 million). This is the result of extraordinary expenses in relation to the public takeover bid by financial investor Thoma Bravo. Adjusted for the extraordinary expenses, EBITDA* totaled EUR 8.55 million. The consolidated net loss* amounted to EUR -5.66 million.

Whistleblowing legislation boosts growth in the compliance segment

EQS Group's growth is significantly influenced by the trend of increasing regulations in the area of compliance for organizations. In this financial year, the regulatory framework gave a strong impetus, particularly the EU Whistleblower Protection Directive, which came into effect in most EU countries in mid-2023.

As the leading cloud software provider for compliance in Europe, EQS Group acquired more than 3,300 new software-as-a-service (SaaS) customers for whistleblower systems in 2023. This increase supported the revenue growth in the compliance segment of 18 percent to EUR 49.95 million. The compliance customer base grew by 87 percent year-on-year to a total of 6,915 SaaS customers.

"After the implementation of the EU Directive was delayed by 18 months, we were finally able to ring in the year of whistleblowing in 2023," explains Achim Weick, founder and CEO of EQS Group. "We are proud to say that we have acquired more than 3,300 new customers within a very short period of time – an outstanding achievement in the B2B SaaS industry. We expect this trend to continue as regulation in Europe progresses. The high level of interest in our Compliance COCKPIT shows that companies need modern digital solutions for increasing regulatory requirements."

With the integration of the Integrity Line whistleblowing solution into the EQS Compliance COCKPIT platform and the addition of further modules to the platform, EQS Group provides a comprehensive compliance management system that enables companies to fulfill existing requirements and be optimally prepared for future laws and guidelines.

"We appreciate the trust placed in us by companies that choose our solutions. We work continuously on identifying their most important needs and requirements, and addressing them as quickly as possible. We also invest heavily in IT security, as we are aware that our customers entrust us with highly sensitive data - from insider information to misconduct within their own organization."

Revenue in the Investor Relations segment also increased in FY 2023, rising by 3 percent to EUR 19.63 million (previous year: EUR 19.12 million). Cloud products revenue increased by 8 percent due to subscription revenue from IR COCKPIT. The discontinuation of business activities in Russia led to a 3 percent decrease in revenue in the Cloud Services segment. 

Strategic partnership with Thoma Bravo ensures long-term growth

On 16 November 2023, EQS Group signed an investor agreement with Thoma Bravo, a leading software investment company. The takeover offer to shareholders was accepted on 2 February 2024 with a large majority of 97.5 percent.

"In order to grow even faster and more profitably, we decided last year to start conversations with private equity investors. It quickly became clear that Thoma Bravo was the right partner for us, who could not only support us with capital, more importantly with many years of experience in the software business, outstanding expertise, and a wealth of industry data. We are now ready to take the next step in our growth story and establish EQS COCKPIT as the leading compliance management system in Europe," says Achim Weick.

Thoma Bravo has acquired or invested in more than 450 software and technology companies worldwide. Having invested more than EUR 10 billion of equity in Europe over the last 12 years, this transaction is Thoma Bravo's first platform investment in Germany.

More information:

The full annual report 2023 is available to download here: https://www.eqs.com/about-eqs/investors/reports-presentations/

The figures for FY 2023 are audited.

* from continuing operations

Press contact

Christina Jahn 

Tel.: +49 89 444430133 

E-Mail: christina.jahn@eqs.com 

About EQS Group

EQS Group is a leading international cloud provider in the areas of corporate compliance, investor relations and sustainability reporting. Thousands of companies across the world use EQS Group’s products to build trust by reliably and securely meeting complex regulatory requirements, minimizing risks and transparently reporting on business performance and its impact on society and the environment.

EQS Group’s products are bundled in the cloud-based software EQS COCKPIT. This allows compliance processes in the areas of whistleblower protection and case handling, policy management and approval processes to be managed just as professionally as business partners, insider lists and reporting obligations. Listed companies also benefit from a global newswire, investor targeting and contact management, as well as IR websites, digital reports and webcasts for efficient and secure investor communication. In addition, EQS Group provides software for the fulfillment of human rights due diligence obligations along corporate supply chains, as well as for compliant sustainability reporting.

EQS Group was founded in Munich in 2000. Today, the group employs around 500 professionals and is represented in the world’s most important financial centers.